ClearView still waiting for funds to sprout
Eventhe all conquering brussell sprout has failed to lift the NRMA’s new financial planning division, ClearView Retirement Solutions, into the black, with the business losing $25 million to finish the financial year $6 million in the red.
In a statement issued last week, NRMA parent Insurance Australia Group (IAG) attributed the loss to the combined impact of poor investment markets and the one-off $12 million cost of establishing ClearView, which was officially launched in February.
However, ClearView’s marketing campaign, which features the humble brussell sprout in the starring role, is still being touted as a success.
IAG financial services general manager John Cowan says the campaign has created strong awareness of the fledgling ClearView, leading to its financial planners booking 31 per cent more appointments with potential clients than expected.
But the recognition is yet to be translated into fund inflows, with the NRMA’s total funds under management actually dropping by $36 million over the last year, as poor investment returns took their toll.
“Compared to our plans, which were made in a very different market, the targets [for fund inflows] have not been met, so we are disappointed, but compared to what the market has done, we are quite happy,” Cowan says.
Despite the lower than expected fund flows, ClearView has increased its planner numbers to 30, up from 25 when ClearView was launched, to deal with the enquiries generated by the marketing campaign.
The IAG group announced a $25 million after tax loss last week, mostly on the back of the downturn in global equity markets.
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